IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/75089.html
   My bibliography  Save this paper

The Role of Knowledge Economy in African Business

Author

Listed:
  • Tchamyou, Vanessa

Abstract

This paper assesses the role of knowledge economy (KE) in African business in 53 countries for the period 1996-2010. The four KE components of the World Bank are employed, notably: education, innovation, economic incentives & institutional regime and information & communication technology. The business indicators are classified into: starting, doing and ending business. Principal components analysis and panel instrumental variable fixed effect approaches are employed as empirical strategies. The findings which are broadly consistent with intuition and the predictions of economic theory suggest that KE policies will substantially boost the starting and doing of business in Africa. This is relevant in fighting unemployment and improving African competitiveness in global value chains. Policy implications for the relevance of each specific KE dimension in African business are discussed with particular emphasis on the theoretical underpinnings of the study. The investigation is original in its contribution at the same time to the scarce literature on African KE and the growing challenges of improving the business climate of the continent by means of KE.

Suggested Citation

  • Tchamyou, Vanessa, 2014. "The Role of Knowledge Economy in African Business," MPRA Paper 75089, University Library of Munich, Germany, revised 27 Dec 2014.
    • Handle: RePEc:pra:mprapa:75089
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/75089/1/MPRA_paper_75089.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. S. Jules-Armand Tapsoba, 2009. "Trade Intensity and Business Cycle Synchronicity in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 18(2), pages 287-318, March.
    2. Vanessa S. Tchamyou & Simplice A. Asongu, 2017. "Information Sharing and Financial Sector Development in Africa," Journal of African Business, Taylor & Francis Journals, vol. 18(1), pages 24-49, January.
    3. Carlisle, Sheena & Kunc, Martin & Jones, Eleri & Tiffin, Scott, 2013. "Supporting innovation for tourism development through multi-stakeholder approaches: Experiences from Africa," Tourism Management, Elsevier, vol. 35(C), pages 59-69.
    4. Augustin Kwasi Fosu, 2013. "Institutions and African Economies: An Overview," Journal of African Economies, Centre for the Study of African Economies, vol. 22(4), pages 491-498, August.
    5. Amavilah, Voxi & Asongu, Simplice A & Andrés, Antonio R, 2014. "Globalization, Peace & Stability, Governance, and Knowledge Economy," MPRA Paper 58756, University Library of Munich, Germany.
    6. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The Mobile Phone in the Diffusion of Knowledge for Institutional Quality in Sub-Saharan Africa," World Development, Elsevier, vol. 86(C), pages 133-147.
    7. Nguena Christian Lambert & Tsafack Nanfosso Roger, 2014. "On the Sensitivity of Banking Activity Shocks: Evidence from the CEMAC Sub-region," Economics Bulletin, AccessEcon, vol. 34(1), pages 354-372.
    8. Antonio R Andres & Simplice A Asongu, 2013. "Global dynamic timelines for IPRs harmonization against software piracy," Economics Bulletin, AccessEcon, vol. 33(1), pages 874-880.
    9. Augustin Kwasi Fosu, 2013. "Growth of African Economies: Productivity, Policy Syndromes and the Importance of Institutions," Journal of African Economies, Centre for the Study of African Economies, vol. 22(4), pages 523-551, August.
    10. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    11. Simplice A Asongu, 2013. "Modeling the future of knowledge economy: evidence from SSA and MENA countries," Economics Bulletin, AccessEcon, vol. 33(1), pages 612-624.
    12. Simplice Asongu, 2013. "Harmonizing IPRs on Software Piracy: Empirics of Trajectories in Africa," Journal of Business Ethics, Springer, vol. 118(1), pages 45-60, November.
    13. John C. Anyanwu, 2012. "Why Does Foreign Direct Investment Go Where It Goes?: New Evidence From African Countries," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 425-462, November.
    14. Simplice A. Asongu, 2014. "Knowledge Economy and Financial Sector Competition in African Countries," African Development Review, African Development Bank, vol. 26(2), pages 333-346, June.
    15. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
    16. Simplice A. Asongu, 2017. "Knowledge Economy Gaps, Policy Syndromes, and Catch-Up Strategies: Fresh South Korean Lessons to Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 211-253, March.
    17. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    18. Lee, Keun & Kim, Byung-Yeon, 2009. "Both Institutions and Policies Matter but Differently for Different Income Groups of Countries: Determinants of Long-Run Economic Growth Revisited," World Development, Elsevier, vol. 37(3), pages 533-549, March.
    19. Simplice A. Asongu, 2018. "Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 81-135, March.
    20. German, Laura & Stroud, Ann, 2007. "A Framework for the Integration of Diverse Learning Approaches: Operationalizing Agricultural Research and Development (R&D) Linkages in Eastern Africa," World Development, Elsevier, vol. 35(5), pages 792-814, May.
    21. Asongu Simplice, 2011. "Government Quality Determinants of Stock Market Performance in African Countries," Working Papers of the African Governance and Development Institute. 11/019, African Governance and Development Institute..
    22. Antonio Andrés & Simplice Asongu & Voxi Amavilah, 2015. "The Impact of Formal Institutions on Knowledge Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 1034-1062, December.
    23. Antonio Andrés & Simplice Asongu, 2013. "Fighting Software Piracy: Which Governance Tools Matter in Africa?," Journal of Business Ethics, Springer, vol. 118(3), pages 667-682, December.
    24. Susanna Khavul & Garry D. Bruton & Eric Wood, 2009. "Informal Family Business in Africa," Entrepreneurship Theory and Practice, , vol. 33(6), pages 1219-1238, November.
    25. Joonghae Suh & Derek H. C. Chen, 2007. "Korea as a Knowledge Economy : Evolutionary Process and Lessons Learned," World Bank Publications - Books, The World Bank Group, number 6755, December.
    26. Paul BENJAMIN & Haroon BHORAT & Halton CHEADLE, 2010. "The cost of “doing business” and labour regulation: The case of South Africa," International Labour Review, International Labour Organization, vol. 149(1), pages 73-91, March.
    27. Ivashina, Victoria, 2009. "Asymmetric information effects on loan spreads," Journal of Financial Economics, Elsevier, vol. 92(2), pages 300-319, May.
    28. Amendolagine, Vito & Boly, Amadou & Coniglio, Nicola Daniele & Prota, Francesco & Seric, Adnan, 2013. "FDI and Local Linkages in Developing Countries: Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 50(C), pages 41-56.
    29. Letiche, John M., 2006. "Positive economic incentives: New behavioral economics and successful economic transitions," Journal of Asian Economics, Elsevier, vol. 17(5), pages 775-796, November.
    30. Zerbe, Noah, 2005. "Biodiversity, ownership, and indigenous knowledge: Exploring legal frameworks for community, farmers, and intellectual property rights in Africa," Ecological Economics, Elsevier, vol. 53(4), pages 493-506, June.
    31. Sampawende Jules Tapsoba, 2010. "Trade Intensity and Business Cycle Synchronicity in Africa," Post-Print halshs-00523582, HAL.
    32. Hannu Tanninen, 1999. "Income inequality, government expenditures and growth," Applied Economics, Taylor & Francis Journals, vol. 31(9), pages 1109-1117.
    33. Eifert, Benn & Gelb, Alan & Ramachandran, Vijaya, 2008. "The Cost of Doing Business in Africa: Evidence from Enterprise Survey Data," World Development, Elsevier, vol. 36(9), pages 1531-1546, September.
    34. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The role of governance in mobile phones for inclusive human development in Sub-Saharan Africa," Technovation, Elsevier, vol. 55, pages 1-13.
    35. Voxi Heinrich Amavilah, 2009. "Knowledge of African countries: production and value of doctoral dissertations," Applied Economics, Taylor & Francis Journals, vol. 41(8), pages 977-989.
    36. Abdul Kamara & Lobna Bousrih & Magidu Nyende, 2007. "Working Paper 88 - Growing a Knowledge - Based Economy: Evidence from Public Expenditure on Education in Africa," Working Paper Series 223, African Development Bank.
    37. Michael Lightfoot, 2011. "Promoting the Knowledge Economy in the Arab World," SAGE Open, , vol. 1(2), pages 21582440114, September.
    38. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    39. Kinda, Tidiane, 2010. "Investment Climate and FDI in Developing Countries: Firm-Level Evidence," World Development, Elsevier, vol. 38(4), pages 498-513, April.
    40. Lin, Brian Chi-ang, 2006. "A sustainable perspective on the knowledge economy: A critique of Austrian and mainstream views," Ecological Economics, Elsevier, vol. 60(1), pages 324-332, November.
    41. World Bank, 2007. "Building Knowledge Economies : Advanced Strategies for Development," World Bank Publications - Books, The World Bank Group, number 6853, December.
    42. Christian-Lambert Lambert Nguena & Roger Tsafack-Nanfosso, 2014. "On the Sensitivity of Banking Activity to Macroeconomic Shocks: Evidence from CEMAC Sub-region [Sensibilité du Secteur Bancaire aux Chocs Macroéconomiques: Cas de la sous-région CEMAC]," Post-Print halshs-01097850, HAL.
    43. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    44. Yaw Nyarko, 2013. "Sustaining High Economic Growth in Sub-Saharan Africa: Knowledge and the Structure of the Economy," Journal of African Economies, Centre for the Study of African Economies, vol. 22(suppl_1), pages -101, January.
    45. Sampawende Tapsoba, 2010. "Trade Intensity and Business Cycle Synchronicity in Africa," African Development Review, African Development Bank, vol. 22(1), pages 149-172.
    46. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    47. Augustin Kwasi Fosu, 2013. "Growth of African Economies: Productivity, Policy Syndromes and the Importance of Institutions," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 22(4), pages 523-551, August.
    48. Cogburn, Derrick L., 0. "Governing global information and communications policy:: Emergent regime formation and the impact on Africa," Telecommunications Policy, Elsevier, vol. 27(1-2), pages 135-153, February.
    49. Sumberg, James, 2005. "Systems of innovation theory and the changing architecture of agricultural research in Africa," Food Policy, Elsevier, vol. 30(1), pages 21-41, February.
    50. Mr. Magnus Saxegaard, 2006. "Excess Liquidity and Effectiveness of Monetary Policy: Evidence from Sub-Saharan Africa," IMF Working Papers 2006/115, International Monetary Fund.
    51. Bartels, Frank L. & Napolitano, Francesco & Tissi, Nicola E., 2014. "FDI in Sub-Saharan Africa: A longitudinal perspective on location-specific factors (2003–2010)," International Business Review, Elsevier, vol. 23(3), pages 516-529.
    52. Roland Bardy & Stephen Drew & Tumenta Kennedy, 2012. "Foreign Investment and Ethics: How to Contribute to Social Responsibility by Doing Business in Less-Developed Countries," Journal of Business Ethics, Springer, vol. 106(3), pages 267-282, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simplice A. Asongu, 2017. "Knowledge Economy Gaps, Policy Syndromes, and Catch-Up Strategies: Fresh South Korean Lessons to Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 211-253, March.
    2. Simplice A. Asongu, 2017. "The Comparative Economics of Knowledge Economy in Africa: Policy Benchmarks, Syndromes, and Implications," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 596-637, June.
    3. Asongu, Simplice & Tchamyou, Vanessa, 2015. "The Impact of Entrepreneurship on Knowledge Economy in Africa," MPRA Paper 70237, University Library of Munich, Germany, revised Aug 2015.
    4. Simplice A. Asongu & Vanessa S. Tchamyou & Paul N. Acha-Anyi, 2020. "Who Is Who in Knowledge Economy in Africa?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 425-457, June.
    5. Asongu, Simplice A. & Andrés, Antonio R., 2020. "Trajectories of knowledge economy in SSA and MENA countries," Technology in Society, Elsevier, vol. 63(C).
    6. Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "The role of lifelong learning on political stability and non violence: evidence from Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(1), pages 141-164, January.
    7. Simplice Asongu & Jacinta C Nwachukwu, 2015. "The incremental effect of education on corruption: evidence of synergy from lifelong learning," Economics Bulletin, AccessEcon, vol. 35(4), pages 2288-2308.
    8. Simplice A. Asongu, 2017. "Boosting Scientific Publications in Africa: Which IPRs Protection Channels Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 197-210, March.
    9. Asongu, Simplice & Andrés, Antonio R., 2015. "Trajectories in Knowledge Economy: Empirics from SSA and MENA countries," MPRA Paper 71786, University Library of Munich, Germany.
    10. Simplice A. Asongu & Vanessa S. Tchamyou, 2019. "Foreign Aid, Education and Lifelong Learning in Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 126-146, March.
    11. Asongu, Simplice A. & Nwachukwu, Jacinta C. & Orim, Stella-Maris I., 2018. "Mobile phones, institutional quality and entrepreneurship in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 183-203.
    12. Voxi Amvilah & Simplice Anutechia Asongu & Antonio Andrés, 2014. "Globalization, Peace & Stability, Governance, and Knowledge Economy," AAYE Policy Research Working Paper Series 14_024, Association of African Young Economists, revised Dec 2014.
    13. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Building Knowledge-Based Economies in Africa: A Systematic Review of Policies and Strategies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1538-1555, December.
    14. Amavilah, Voxi & Asongu, Simplice A. & Andrés, Antonio R., 2017. "Effects of globalization on peace and stability: Implications for governance and the knowledge economy of African countries," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 91-103.
    15. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Building Knowledge Economies in Africa: A Survey of Policies and Strategies," Research Africa Network Working Papers 17/021, Research Africa Network (RAN).
    16. Simplice Asongu & Enowbi Batuo & Vanessa Tchamyou, 2015. "Bundling Governance: Finance versus Institutions in Private Investment Promotion," Working Papers of the African Governance and Development Institute. 15/051, African Governance and Development Institute..
    17. Simplice A. Asongu, 2014. "Knowledge Economy and Financial Sector Competition in African Countries," African Development Review, African Development Bank, vol. 26(2), pages 333-346, June.
    18. Simplice Asongu & Christian Nguena, 2014. "Equitable and Sustainable Development of Foreign Land Acquisitions: Lessons, Policies and Implications," Working Papers of the African Governance and Development Institute. 14/038, African Governance and Development Institute..
    19. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Governance, capital flight and industrialisation in Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    20. Simplice A. Asongu & Oasis Kodila-Tedika, 2018. "Determinants of Property Rights Protection in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(4), pages 1291-1308, December.

    More about this item

    Keywords

    Knowledge Economy; Doing business; Development; Africa;
    All these keywords.

    JEL classification:

    • L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:75089. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.